Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.30 per hour. During October, the company actually uses

image text in transcribedimage text in transcribedimage text in transcribed

Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.30 per hour. During October, the company actually uses 11,100 hours of direct labor at a $172,050 total cost to produce 5,900 units. In November, the company uses 15,100 hours of direct labor at a $234,805 total cost to produce 6,300 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) October Actual Cost Standard Cost 0 $ 0 $ 0 $ 0 0 November Actual Cost Standard Cost 0 $ 0 $ 0 $ 0 0 Required 1 Required 2 Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Which direct labor variances will the company investigate further

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Undergraduates

Authors: James Wallace, Scott Hobson, Theodore Christensen

2nd Edition

1618533096, 9781618533098

More Books

Students also viewed these Accounting questions

Question

What is the difference between risk aversion and loss aversion?

Answered: 1 week ago